MUMBAI: Leading merchant commerce platform Pine Labs is hitting the primary market with its much-anticipated initial public offering on November 7, seeking to raise Rs 3,890 crore from the issue, valuing the company at around Rs 25,377 crore at the upper end of the price band of Rs 210–221.
The Noida-based company's IPO, backed by PayPal, Mastercard, Sequoia Capital, Temasek Holdings, and Peak XV Partners among others, comprises a fresh issue of 9.41 crore shares worth Rs 2,080 crore and an offer for sale (OFS) of 8.23 crore shares aggregating to Rs 1,819.91 crore, the management told reporters here Monday.
Like in other issues such as Lenskart and Groww, these investors are also in for windfall gains from the issue considering their very low entry cost and the current valuation.
Notably, the company has reduced the total issue size from what was originally proposed in the DRHP, wherein it had planned to raise Rs 2,600 crore through the fresh issue, while the OFS volume is down from 14.78 crore shares.
Through the OFS, existing investors such as PayPal, Mastercard, Peak XV Partners, Actis Pine Labs Investment Holdings, and MacRitchie Investments will offload 8.23 crore shares. Cofounder Lokvir Kapoor will also pare shares in the IPO.
The digital payment solutions company had filed its DRHP with Sebi on June 25 and received its approval on September 11.
Founded in 1998, Pine Labs is one of the leading merchant commerce platforms, offering payment solutions, merchant financing, and other fintech services to retailers and enterprises. Over the years, it has expanded into Southeast Asia and the Middle East, with key investors including Sequoia Capital, Temasek Holdings, and Mastercard.
According to the DRHP, the fintech firm intends to use the money raised from the fresh issue to repay Rs 530 crore of borrowings. As of August, its outstanding borrowings stood at Rs 836.63 crore. Some of the capital will also be used to invest in subsidiaries—Qwikcilver Singapore, Pine Payment Solutions Malaysia, and Pine Labs UAE—to expand its presence in those markets.
